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Zhejiang Geely

The strategic path Volvo Car plans to follow is in question because of discord at the board level between new Chinese ownership and traditional European ways, according to two people familiar with the situation.

After several years adrift, as it changed owners and flirted with sexier advertisements, the Swedish carmaker is in the midst of a US$11 billion turnaround plan that it hopes will nearly double worldwide sales to 800,000 by 2020.

Guangzhou Automobile Industry Group, Zhejiang Geely and Wanxiang Qianchao are among companies that have sold 8.2 billion yuan (HK$10.1 billion) of debt so far this year, compared with 2.5 billion yuan a year earlier, according to data compiled by Bloomberg. Overall corporate bond sales rose 21 per cent to 399 billion yuan.

As Geely will take over the servicing of all the taxi maker's existing vehicles, it will have to shoulder the repair costs of the 400 Manganese Bronze taxis that were recalled in October because of a fault in their steering boxes.

Mainland carmaker Zhejiang Geely may buy out its London taxi manufacturing partner Manganese Bronze for less than £2.7 million (HK$33 million), a person familiar with the talks said.

Zhejiang Geely, the parent company of Hong Kong-listed Geely Automobile, proposed a deal to Manganese Bronze last month to buy out the remaining 80 per cent stake of the company, according to the person.